FIS Drives New Trading in Container FFAs
Freight Investor Services are pleased to announce a new wave of trading in Container FFAs during a highly volatile period for the Freight market.
Last week FIS completed contracts on container FFAs (Freight Forward Agreements) for the month of March ’21 on the Asia to Mediterranean route at a level of 7900 USD/FEU. This was based on the Freightos Baltic Exchange (FBX13) daily index. Mark Jackson, Chief Executive of the Baltic Exchange said that:
“The concept of index-linked floating contracts and FFAs in the container market for freight forwarders, shippers and carriers is not new. But the ability to benchmark a contract against a robust, trustworthy index which comes under the umbrella of a UK regulated organisation is a potential gamechanger for the container freight industry. The daily FBX Index provides the market with a credible and fully transparent reference point. It is based on the world’s largest global database of multimodal freight rates using real-time data from logistical providers and overseen by an institution whose information already underpins billions of dollars-worth of physical and forward freight contracts in the dry bulk, oil and gas transportation markets.”